SRK Consulting briefs Chinese mining delegation on mineral reserves

14 November 2018Consultancy.co.za

At a knowledge-sharing event held in Johannesburg, South African mining consultancy SRK Consulting has offered in-depth insights to a delegation of mining executives from China. The delegation was briefed primarily on what SRK Consulting terms as ‘modifying factors’ that affect the sector.

Since a global dip in commodity prices in 2015, South Africa’s mining sector has been navigating a turbulent period. The dip in prices sent the market capitalisations of gold and platinum into a nosedive and has dented revenues for the sector as a whole over the last two years in particular.

As a result, stakeholders in the country’s mining sector have gone into damage control mode, while consultants active in the sector have found themselves in high demand. SRK Consulting is one such firm, which has been increasingly active throughout the country over the last year.

The firm came under new leadership in February this year, and has been active in offering advice and insights on various aspects of mining in South Africa. In June, a Senior Environmental Economist at the firm commented on the merits of a risk-based approach to disposing mining waste, both for environmental sustainability and for saving on capital costs.

Now, the firm has briefed a 20-member delegation of Chinese mining executives looking to join the Committee for Mineral Reserves International Reporting Standards (CRIRSCO). As a standardisation body, CRIRSCO offers a set of guidelines with respect to reporting on exploration endeavours.

The body looks to accurately inform investors, based on methodical representations of mineral resources and reserves, as well as the conversion from the former to the latter. The process of conversion involves a number of ‘modifying factors’ that SRK Consulting considers deserving of significant attention.

The conceptualisation and quantification of these modifying factors constituted the major share of the briefing that SRK Consulting presented to the Chinese delegation at a knowledge sharing seminar held at the Wanderers club in Johannesburg, in addition to a number of other subjects.